China Summons Canadian Envoy to Protest Huawei Executive's Arrest

Share

China has warned Canada of "severe consequences" if it did not immediately release telecom company Huawei's chief financial officer (CFO), calling the case "extremely nasty".

Fears that the detention of Huawei's CFO may derail the already divisive trade talks between the United States and China is contributing to high volatility for the US stock market this week.

So far, Trump and his administration have been strangely quiet on the topic, analysts said.

Trump did not know about the arrest in advance, two us officials said on Thursday.

The move "ignored the law, was unreasonable" and was in its very nature "extremely nasty", Le added. "But we're going to have to live with that", Mulroney said, according to Reuters. Washington alleges that she covered up Huawei's links to a firm that tried to sell equipment to Iran despite sanctions.

Meng was arrested Saturday while in transit at Vancouver's airport.

The official acknowledged that the arrest could complicate efforts to reach a broader US-China trade deal but would not necessarily damage the process. There has been a cacophony of commentary in the press and social media on both sides of the Pacific.

China has demanded the chief financial officer's release and labeled her detention a "gross violation of human rights".

A Huawei spokesman declined to comment on Thursday before Meng's court appearance and said that Wednesday's statement still stands.

In this courtroom sketch, CFO Meng Wanzhou of Huawei Technologies, in green, sits beside a translator during Friday's bail hearing at the provincial British Columbia Supreme Court in Vancouver.

Chinese telecom giant Huawei's chief financial officer, arrested in Canada, faces US fraud charges for allegedly lying to banks about the use of a covert subsidiary to sell to Iran in breach of sanctions, a bail hearing heard Friday. Ltd., is accused of fraud offenses and faces an extradition request from the USA, a bail hearing was told.

Reports from Reuters have previously suggested that over the past decade, Huawei has struck deals to resell embargoed technologies, owned by USA companies including Hewlett-Packard, to sanctioned telecom operators in Iran.

Chinese state media have slammed Meng's detention, accusing the United States of trying to "stifle" Huawei and curb its global expansion. The story caused concern among banks that did global business with Huawei, he said. The US government has long viewed the company and its close ties to the Chinese government as a threat to national security.

FILE - A salesclerk looks at his smartphone in a Huawei store at a shopping mall in Beijing, July 4, 2018.

Canadian officials have said Ottawa was continuing to review Huawei's technology for use in upcoming fifth-generation networks.

Although there are some waivers, US Treasury Secretary Steven Mnuchin has said the US will "aggressively" target any firm or organisation "evading our sanctions".

What China might do in response remains unclear.

A senior executive of Chinese tech giant Huawei is facing allegations of fraud by using a subsidiary to violate United States and European Union trade sanctions against Iran in a case that shook world stock markets this week.

Fulbright University Vietnam's Balding said the concerns make sense but added that China has also been getting very savvy at how it responds, finding more discreet ways to get even.

Share